navigating the pillars of estate planning in mexico strategies for securing the future
Estate planning is a crucial process that allows us to manage our assets, protect our loved ones, and ensure that our will is carried out, even after our death. While the subject may seem daunting, especially at first approach, breaking it down into simple steps can make it more accessible. Below, we will explain the most relevant estate planning strategies.
Take an inventory of your assets. The first step in approaching estate planning is to be clear about the assets that make up our patrimony, including:
- Real estate assets
- Financial assets (bank accounts, investments, etc.)
- Movable assets (vehicles, jewelry, collectibles, or items of sentimental value, etc.)
- Shares, partnership interests or participations in legal entities
- Life insurance policies
- AFORE (Retirement Fund Manager or Administradora de Fondos para el Retiro in Spanish) or personal retirement plans.
This inventory will allow you to have a clear picture of the value of your assets and will help you determine how to divide your assets.
Identify our beneficiaries. It is important to decide who will receive one or more assets from our estate. Among the most common beneficiaries are spouses, partners, children, siblings, other relatives, and even foundations and civil associations. We need to be clear about how we would like to divide our estate among our loved ones.
Select an executor. Choose a trustworthy person to act as our executor. This person will be responsible for administering our estate and making sure our will is carried out. Sometimes it may be wise to discuss our decision with this person to make sure they are willing to assume this responsibility.
Making a will. A will is a legal act executed before a notary public that establishes how our assets are to be distributed after our death. We can also appoint guardians for minor children.
Along with the will, before the notary public we can designate a person we trust to be our guardian, and to make decisions on our behalf in the event that for any reason we fall into a state of interdiction.
Review bank beneficiaries. In case we have bank accounts, investment accounts, or any other type of accounts in credit institutions, it is important to remember that in the contracts we sign with these institutions we name beneficiaries who will receive the amounts deposited or invested in such institutions after our death.
Create a trust (if necessary). If we have complex assets or want to establish control over how our assets are managed after our death, we suggest considering the creation of a trust. Trusts allow us to designate an institution we trust to dictate precise instructions for the management and eventual distribution of our estate.
Enter into an advance directive document (depending on the state). In some Mexican states, some people with certain illnesses are allowed to grant a document in which they freely and informedly express their intention to be subjected or not to be subjected to means, treatments, or procedures with the sole purpose of extending their life.
To appoint proxies. To choose one or more persons of great confidence to act as our representatives to carry out acts and procedures on our behalf, as our mobility may be reduced or moving may become complicated.
Review and update regularly. Estate planning is an ongoing task. Life circumstances change constantly, there are relevant events in our lives and those of our family members that could alter our plans, such as marriages, divorces, births and deaths; so, it is very important to review our plans constantly and update them as needed.
In conclusion…
Estate planning, more than an expression of personal responsibility, is also a consideration and an act of love for those we care about. With these strategies, we can take comfort in knowing that our wishes will be respected and that our loved ones will be protected.
It is very important to regularly review and update our estate plan to reflect any changes in our lives, such as the birth of children, marriage, divorce, or the acquisition of new assets. It is also important to consult with estate and probate professionals to ensure that our plan is valid under applicable laws.
Remember, estate planning is an ongoing journey, not a destination. With each step we take in estate planning, we can take comfort in knowing that we are building a strong and secure legacy for those we care about. At InnovaLaw, we are committed to guiding you through every stage of this important process, ensuring that your estate and your loved ones are protected today and in the future.